Whether an Implied Warranty Arises Out of the Circumstances Under

question 57

Multiple Choice

Whether an implied warranty arises out of the circumstances under which the parties enter into a contract may depend on:

• A) what state the transaction takes place in.
• B) the seller's merchant or non-merchant status.
• C) the design of the product.
• D) the cost of the product.

---

Definitions:

Dividends in Arrears

Dividends on cumulative preferred stock that have not been paid in prior years.

Cumulative

Describes items or amounts that increase over time through successive additions, often used in the context of dividends that are accrued if not paid in a given period.

Preferred Stockholders

Investors who own preferred shares in a company, which have a higher claim on assets and earnings than common stock, often receiving dividends before common stockholders.

Common Stockholders

Individuals or entities that own common stock in a corporation, granting them rights to dividends and voting in corporate matters.